Ceuta

Ceuta occupies a unique position: a Spanish autonomous city on the African continent, bordering Morocco, functioning as a duty-free enclave dependent on commerce and military presence. The 18 km² territory holds approximately 85,000 residents, with the Spanish military and border services providing significant employment. Cross-border trade with Morocco historically drove commercial activity, though border tensions periodically disrupt flows.

The economy remains service-dominated with minimal industry given territorial constraints. Duty-free status attracts commerce that would otherwise route through Morocco, creating an arbitrage economy vulnerable to policy changes on either side of the border. Tourism contributes modestly, drawing visitors interested in the geographic curiosity of European territory in Africa.

Ceuta's existence reflects colonial history: Spain has held the territory since 1668, creating a border that Morocco does not recognize. Immigration pressure from sub-Saharan Africa makes the border fence a flashpoint, with Spain serving as a gateway to the European Union for migrants reaching Ceuta. The city demonstrates how historical geography creates economic niches—duty-free commerce, military employment, border services—that would not exist without the anomaly of European sovereignty on African soil.